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In a double-whammy, the commission also wants to increase co-payments on taxpayer-funded medicines.

Instead of paying $36.90, it recommends we pay $41.90. Concession card holders would still pay $6 for each prescription but once their safety net limit of $360 was reached they should pay $2 instead of getting medicines free.

The commission recommends the pharmacy sector be opened to competition, which is code for allowing the major supermarkets to establish in-store pharmacies.

It also wants the private health market to provide greater incentives by allowing funds to provide coverage for GP visits and offer premiums that take into account lifestyle factors such as smoking.

Higher-income earners should be forced to take out private health insurance and those who don't should pay a higher Medicare levy surcharge than they do now.

The commission suggests the surcharge should be increased to between 3-3.5 per cent, as opposed to the 1-1.5 per cent now.

In essence, wealthy Australians should take greater individual responsibility for the cost of their health care.

They should be required to insure for basic health services instead of relying on Medicare.

Most Australians would be unaffected by the change, the commission says.

But more would lose the 30 per cent private health insurance rebate.

Health Minister Peter Dutton on Thursday indicated the government was looking at giving health insurers a greater involvement in primary health care.

As well, the commonwealth's contribution to the growth in the cost of public hospital services should be capped at 45 per cent.

Doctors hope the government will reject the commission's recommendations, saying a GP co-payment and exemption of high income earners from Medicare would be a blow to universal healthcare.

"It looks like a systematic attempt to shift costs onto individuals and the least well off," Australian Medical Association president Steve Hambleton told AAP.

"We don't want to put a barrier between sick people seeing a doctor and sick people getting their pharmaceuticals."